Spector, Roseman & Kodroff, P.C. Announces Class Action Suit Against Ulta Salon, Cosmetics & Fragrance, Inc.
The corrected release reads:
SPECTOR, ROSEMAN & KODROFF, P.C. ANNOUNCES CLASS ACTION SUIT AGAINST ULTA SALON, COSMETICS & FRAGRANCE, INC.
The law firm of Spector, Roseman & Kodroff, P.C. announces that a securities class action lawsuit was commenced in the United States District Court for the Northern District of Illinois, on behalf of purchasers of the common stock of Ulta Salon, Cosmetics & Fragrance, Inc. ("Ulta" or the "Company") (Nasdaq:ULTA) pursuant or traceable to the Company's October 25, 2007 Initial Public Offering (the "IPO" or the "Offering") through December 10, 2007 inclusive (the "Class Period").
The Complaint alleges that defendants violated the federal securities laws by issuing materially false and misleading statements contained in press releases and filings with the Securities and Exchange Commission during the Class Period. Specifically, the Complaint alleges that: (1) that the Company was unable to effectively manage inventory, resulting in a 40% increase of inventory; (2) that the Company's SG&A, as a percentage of net sales, had increased in the third quarter, largely a result of previously undisclosed increased advertising expenses; (3) that the Company failed to disclose any material information about third quarter 2007 earnings in the Company's Registration Statement, despite the fact that the third quarter was to end nine days after the filing of the Registration Statement; and (4) that the Company lacked adequate internal and financial controls.
On October 25, 2007, the Company conducted its initial public offering ("IPO") through a Registration Statement and Prospectus Through the IPO, the Company sold 8.54 million shares of stock at $18 per share, raising over $153 million. At the close of business on October 25, 2007, Ulta's stock had increased $11.82 per share to $29.82, representing a 65.67% increase from the IPO price.
In its Prospectus and throughout the Class Period, Ulta reported its financial results from its first and second quarters of 2007, implying that consistent trends in expenses and inventory levels would continue. The Company failed, however, to make any significant reference to the third quarter 2007, which was to close on November 9, 2007, nine days after the Registration Statement was issued.
Then on December 11, 2007, Ulta released its third quarter 2007 fiscal results. The Company revealed that it had an additional $15 million of seasonal inventory, and that its selling, general, and administrative expenses ("SG&A") had increased 36% to $55.6 million, due largely to increased expenditure for advertising. On this news, shares of the Company's stock declined $6.59 per share, or 23.96 percent, to close on December 11, 2007 at $20.91 per share, on unusually heavy trading volume.
If you purchased Ulta securities during the Class Period, you may, no later than February 19, 2008, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, which acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in Ulta securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at firstname.lastname@example.org for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or e-mail at email@example.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered through judgments and settlements on behalf of thousands of defrauded shareholders and companies.
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|Date:||Jan 14, 2008|
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